Role Of Management Accounting Systems Research Articles

Role of Management Accounting Systems in Sustainable Survival of SMEs in Pakistan: A Conceptual Framework

This conceptual paper proposes a new framework for ensuring Pakistani SMEs' sustainable survival. SME owners always strive to survive in the long run, but most SMEs cannot sustain themselves due to resource constraints. In the ensuing survival of SMEs, the role of management accounting is critical. Management accounting provides financial and non-financial information for planning, controlling and decision-making. This information can persuade SME owners to think in a strategic way which can enhance their strategic thinking. Arguably, management accounting can cognitively engage SME owners by enhancing their strategic thinking, leading SMEs to enhance sustainable survival. Based on these arguments, a conceptual framework has been proposed in which strategic thinking mediates the relationship between management accounting systems and sustainable survival. This conceptual paper has endeavored to advance the understanding of strategic thinking in management accounting scholarship. Furthermore, this paper has also provided practical guidelines for SME owners to concentrate on sustainable survival by developing management accounting systems and focusing on strategic thinking.

Mediating Effect of Management Accounting System on The Relationship Between Competition and Performance


 
 
 
 Purpose - This study aims to investigate the role of management accounting systems in mediating the relationship between competition and managerial performance in manufacturing companies in Banten
 
 
 
 
 Design/method/approach - Respondents in this study were middle managers in manufacturing companies in Banten. The choice of respondents using purposive sampling technique and data collection of respondents using the survey method. Partial Least Square is a data analysis technique used in this study
 
 
 
 
 Finding - The results of the study show that there is a positive relationship between competition and the management accounting system on performance. In addition, competition can supply a positive and considerable influence. SA, accounting systems play a role in mediating competition and performance.
 
 
 
 
 Originality - This research was conducted to supply an overview of the role of the management accounting system in influencing the level of competition in manufacturing companies in Banten which has an impact on performance.
 
 
 

The role of management accounting system and organizational culture in mediating the relationship between mutual dependency and environmental uncertainty

This study aimed to develop a conceptual model of the mediating role of management accounting system (Broadscope) and organizational culture on the influence of mutual dependency and environmental uncertainty on managerial performance. The sample was 126 managers of Swamitra Palm Oil Plantation in Riau. The entire population was sampled. The data were processed using Structural Equation Modeling Partial Least Square (SEM PLS). The findings in this study are mutual dependency and environmental uncertainty have a positive influence on managerial performance, organizational culture mediates the influence of environmental uncertainty on managerial performance, meanwhile management accounting system (Broadscope) does not mediate the influence of mutual dependency on managerial performance.

Research on the use of management accounting system in early detection

Businesses are facing an uncertain world that is constantly changing due to social environment, consumer demand and product competitiveness, representing the determining factor of competitive market pressures. In order to choose between alternative business opportunities, the managers need information about future costs and revenues and how they may vary at different levels of activity. In decision-making processes, the information from the internal and external environment must be considered, in order to identify all the opportunities and threats specific to the activity. For an efficient and fruitful use of this information in business environment, management accounting systems are used for providing performance reporting, planning, budgeting and forecasting processes, which are fundamental to management. The aim of this study is to analyze the role of management accounting systems in decisions process, by improving understanding of how managers use management accounting systems, through a questionnaire addressed to automotive industry companies, at international level.

Management accounting systems effectiveness, perceived environmental uncertainty and companies’ performance: the case of Jordanian companies

PurposeThis study aims to investigate the relationship between management accounting systems effectiveness (MASE) and company performance and then it examines the role of perceived environmental uncertainty as a moderator on this relationship. It provides empirical evidence from a developing market, especially from the Jordanian market.Design/methodology/approachThis study is based on collecting its data using a quantitative method to assist in explaining and interpreting the results, whereby the study data were collected through a survey design approach using a questionnaire method to achieve the objectives of the study. The population of this study included all Jordanian companies listed on the Amman Stock Exchange (ASE) at the end of 2019, a total of 187 companies. Therefore, the study sample consists of all these companies (a completely sensuous population) which are listed on ASE at the end of 2019.FindingsThe findings of this study offered that two informational characteristics of MASE, namely, timeliness and integration, have a significant impact on the financial performance and other characteristics have no impact on the financial (FP) and nonfinancial (NFP) performance. The informational characteristics of management accounting systems complement each other to ensure the MASE in the company, where the relationship between MASE proxied by four informational characteristics together and FP as well as NFP, were highly significant. Additionally, the findings documented that perceived environmental uncertainty, namely, customer uncertainty, competitor uncertainty and technology uncertainty separately do not moderate the relationship between MASE and company performance (both FP and NFP).Research limitations/implicationsThe findings of this study shape the way for more thorough studies into monitoring MASE. Nevertheless, to start efficient decisions, managers need to comprehend the interaction of the MASE with other factors. All these considerations need to be comprehended both for and against the performance. Finally, this study addressed important issues that have practical management value. However, it is limited to a sample from one country. Future research would be interesting to study different businesses and cultural settings to enhance the theoretical and practical contributions of the study’s findings and conclusions. To be more specific, further study should have a wider view of the determinants of performance by containing economic factors in different areas such as the MENA region.Originality/valueTo the best of the knowledge, this is the first study of Jordan to examine the relationship between MASE and company performance from two sides (namely, financial and non-financial performance), moderated by perceived environmental uncertainty. As such, the study raises significant findings drawing attention to management accounting systems and the role of management accounting systems in Jordan.

The propensity of risk-taking and financial efficiency: Exploring the role of management accounting system: Evidence from the manufacturing sector

This study aimed to know the impact of management accounting systems on firm financial efficiency while considering the CEOs risk-taking propensity. The Data was collected with the help of a self-administered questionnaire-based survey from the manufacturing sector of India. Used purposive sampling technique to collect data from 338 respondents. Results have shown that the broad scope management accounting system and integrator’s impact is insignificant on firm financial efficiency. In contrast, the effects of timeline and aggregation are significant on firm financial efficiency. Simultaneously, the mediation of risk-taking propensity is significant in all the cases except for integrator and firm financial efficiency. The researcher has adopted the latest and useful tools and techniques for exploring the problem. This study is a valuable addition. It is practically inducing the higher management and CEOs to follow the high-risk and high return concept while implementing the organizations’ management accounting system. This study is also helpful for organisations that are willing to enhance financial efficiency by employing novel methods.

How does cross-functional cooperation influence organizational performance? The mediating role of management accounting systems

Interfirm cooperation and its linkage to management accounting information are vital for organizational performance. However, the literature lacks insight into how competitive advantage emerges in ...

The role of management accounting systems in global value strategies

In this paper, we explore the relationship and interdependencies of firms’ positions in global markets, innovation, foci on value creation or value development strategies and their intensity of use and system design of management accounting (MA) tools. We collect data through a survey of the 500 largest Portuguese firms. The results show multiple interdependencies of MA intensity of use and system design and global positioning as well as the value foci of firms. Global market positioning, as well as MA intensity, is directly associated with innovation. The multiple configurations also show that the value strategy focus (creating new products or solely developing them for different markets) changes the nature of the MA system put in place by firms. Consequently, we contribute to the discussion of MA systems vs MA packages by specifically addressing the fit and internal consistency of those tools. Methodologically, the results are robust to different analytical tools - multivariate regression, fuzzy-set qualitative comparative analysis (fsQCA) and factor analysis.

The role of management accounting systems in sustainable and development strategies

Abstract The cycle of corporate measures in line with consideration of apprehensions related to supportable progress and communal and environmental accountability broadens the constraint of routine measurement to take into justification social and environmental gauges. The role of management accounting, historically orientated toward the dimension of economic and financial performance, is consequently questioned in its capacity to evolve towards an integration of these standards into the dimension, management and performance reporting fashions. Environmental control Accounting may be understood as an extension of outmoded management accounting (Anthony 1988, Simons 1995) toward environmental control (Boiral 2007, Renaud 2009). Conversely, several pieces of research tend to indicate that, some distance from integration, we’d rather witness phenomena of loose coupling among monetary, environmental and social performance systems. Management accounting could then be refocused on management and reporting of economic and economic overall performance, even as different functions of the enterprise might be in charge of the social and environmental dimensions of overall performance. This can be seen as an instance of Brunsson’s (1989) thesis on organizational hypocrisy. The purpose of this paper is to look at the position of management accounting structures in sustainable and development techniques. Specifically, it is a concern of interrogating closely the speculation of a decoupling that would bring about the focusing of control accounting systems on the sole scope of financial and economic measures and reporting. The study will use a survey method of quantitative research to examine the impacts of the inclusion of environmental and social dimensions to the management accounting basic functions. It will engage workers of entities working in Lebanon. A survey will examine management accountants’ perceptions about the Environmental Management Accounting. The results will show the possibilities of actions of the environmental management accounting and the arbitration between financial priorities, environmental and social issues and will propose different configurations of environmental management accounting.

THE ROLE OF MANAGEMENT ACCOUNTING SYSTEMS, ENERGY EFFICIENCY AND ORGANIZATIONAL INNOVATION IN DRIVING COMPETITIVE ADVANTAGE AND FIRM PERFORMANCE

The current study analyzes the role of management accounting systems (MAS) in dealing the critical environmental problems and organizational image for fulfilling environmental and organizational objective by using the advanced and suitable empirical investigation of PLS-SEM. In particular, the current study investigates the role of MAS systems in driving energy efficiency and organizational reputation in Malaysian manufacturing firms. In addition, the contribution of the present study is extended to identify the contribution of organizational energy-efficient processing and reputation in enhancing the firm's competitiveness and performance. The results of partial least square confirm that energy efficiency and organizational reputation have positive and significantly influenced by the management accounting system. Also, energy efficiency and organization reputation have positively and significantly influenced the competitive advantage of the manufacturing firms. Finally, we found the evidence that competitive advantage has significantly and positively impact on firm performance in Malaysian manufacturing firms. Keywords: Management accounting system, energy efficiency, firm performance, Malaysia.JEL Classifications: M14, M41, M42DOI: https://doi.org/10.32479/ijeep.7749

How Does Cross-Functional Cooperation Influence Organizational Performance? The Mediating Role of Management Accounting Systems

How Does Cross-Functional Cooperation Influence Organizational Performance? The Mediating Role of Management Accounting Systems

Market Competition, Lean Manufacturing Practices and The Role of Management Accounting Systems (MAS) Information

ABSTRACT Adoption of advanced manufacturing techniques such as lean manufacturing is one of the strategies that help manufacturing firms to sustain their competitiveness and achieve the desired outcomes. It is argued that the traditional Management Accounting Systems (MAS) are no longer capable of providing information necessary to operate in the ever changing business environment. This study examines the role of MAS information in the relationship between market competition, lean manufacturing and organisational performance. Data were gathered using a questionnaire survey from manufacturing firms listed in the Federation of Malaysian Manufacturers (FMM) Directory. The results reveal the relationships between lean manufacturing and the MAS, as well as between the MAS and performance, are positive and significant, which suggest that the relationship between lean manufacturing and performance is indirect through the MAS. This provides evidence that the use of MAS information in a lean manufacturing environment facilitates firms in improving organisational performance. Keywords: Lean manufacturing; just in time; total quality management; market competition; management accounting systems ABSTRAK Penggunaan teknik pengilangan maju seperti pengilangan ‘lean’ adalah salah satu strategi yang membantu syarikat pengilangan untuk mengekalkan daya saing mereka dan mencapai hasil yang dikehendaki. Adalah dikatakan bahawa sistem perakaunan pengurusan (MAS) tradisional tidak lagi mampu menyediakan maklumat yang diperlukan untuk beroperasi dalam persekitaran perniagaan yang sentiasa berubah-ubah. Kajian ini mengkaji peranan maklumat MAS dalam hubungan di antara persaingan pasaran, pengilangan ‘lean’ dan prestasi organisasi. Data dikumpulkan dengan menggunakan soal selidik dari firma-firma pengilangan yang disenaraikan di Direktori Persekutuan Pekilang-Pekilang Malaysia (FMM). Keputusan mendedahkan bahawa hubungan di antara pengilangan ‘lean’ dan MAS, serta di antara MAS dan prestasi, adalah positif dan signifikan, yang menunjukkan bahawa hubungan di antara pengilangan ‘lean’ dan prestasi adalah secara tidak langsung melalui MAS. Ini memberikan bukti bahawa penggunaan maklumat MAS di dalam persekitaran pengilangan ‘lean’ memudahkan syarikat untuk meningkatkan prestasi organisasi. Kata kunci: Pengilangan ‘lean’; ‘just in time’; pengurusan kualiti menyeluruh; persaingan pasaran; sistem perakaunan pengurusan

English

Family business succession is considered inherent to family businesses and represents a critical process that is generally characterised by resistance to change. This study aims to investigate the role of management accounting systems (MASs) in family business succession, in order to understand how changes in MASs during the succession across different family generations can help the succession process itself, facilitating the rise of the new leader, supporting changes, and reducing resistance to them. The research adopts a case study approach, focusing on organizational routines and their changes, at the same time taking into account the socioemotional wealth of the family firm. Evidence from the study shows the strategic role of MAS in managing the succession process, through the implementation of new routines and rules in helping the decision-making process and in achieving the firm’s leadership. Key words: Family business succession, management accounting changes, routines, socioemotional wealth.

The role of management accounting systems in the development of intellectual capital

PurposeThe purpose of this paper is to examine the role of management accounting systems (MAS) in the development of intellectual capital (IC) – i.e. human capital (HC), structural capital (SC) and relational capital (RC) – and the resultant effects on organizational performance.Design/methodology/approachA questionnaire was developed to conduct a survey of high-level managers of Portuguese companies. The data collected were analyzed through the use of structural equation modeling with AMOS.FindingsStatistical support was found for six out of nine hypothesized relationships. The findings confirm the role of MAS in the development of HC and SC. Results also showed positive and statistically significant relationships between the three dimensions of IC, in line with previous research. Finally, results indicated that SC has a positive and significant link with organizational performance, in keeping with some research.Research limitations/implicationsThe estimation procedure allowed only a partial validation of the proposed model because, although positive, the relationships between MAS and RC, between HC and performance and between RC and organizational performance were not statistically significant.Practical implicationsThe study highlights the role of MAS as information networks that collect, process and communicate information that influences the development of IC, as well as networks of relationships that support the establishment of conditions for the creation and integration of organizational knowledge and the development of IC.Originality/valueIn this research, an arguably more complete framework of the relations between MAS, IC and performance is developed and empirically tested. Despite the existence of some literature addressing the relationship between MAS and IC, this is the first study, of which authors are aware, that focuses specifically on the relationships between MAS and the three dimensions of IC (HC, SC and RC), as well as their effects on organizational performance.

The Role of a Management Accounting System in the Decision-Making Process: Evidence from a Post-Transition Economy

Information about the management accounting system (MAS) is required for high-quality decision-making in business. Thus, MAS has to be appropriately developed and organized. The paper aims to explore the role of MAS in the decision-making process and its changes from the perspective of the economy that shifted from transition towards market-oriented economy. The study was performed on the sample of medium-sized and large Slovenian companies. The methodology comprises an interpretation of responses to the questionnaire, which was distributed in 1995, 2001, 2006, and 2011. The analysis of the data shows changes in the role of MAS over time and indicates the characteristics of MAS during transition and post-transition periods. The role of MAS was assessed by analyzing the frequency of reporting, content, and scope of MAS information for top and middle management. The results show that in times of crisis Slovenian management did not use MAS information more frequently, as suggested by the theory. The results indicate that MAS was not that developed during the transition period in comparison to traditionally developed market economies, while during the post-transition period, especially in the period of crisis, improvements are notable. Based on the results, the authors provide some recommendations for further improvement of MAS in the analyzed companies. The study is designed to make a contribution to management accounting literature from the perspective of a transition economy. DOI: http://dx.doi.org/10.5755/j01.ee.26.1.4873

The Role of Management Accounting Systems in Health Care Organizations:

The Role of Management Accounting Systems in Health Care Organizations:

Role of Management Accounting Systems in the Development and Efficacy of Transactive Memory Systems

ABSTRACT In-depth understanding of the factors that facilitate group learning and group performance is critical for firms given the preponderance of group-based work in modern organizations. A firm's management accounting system (MAS) can play a critical role in the development of group learning. This paper discusses the role of MAS on an important driver of group learning; i.e., the group's transactive memory system (TMS). TMS refers to a shared memory system whereby group members obtain mutual awareness of relative expertise of individual group members based on interactions between members. Significant extant research reveals positive effects of TMS on team performance. We posit that MAS can influence the development of TMS; for example, MAS can facilitate encoding, storing, and retrieving information for TMS development (the information effect). MAS can also assist in increasing employee motivation to effectively contribute to and utilize TMS (the motivation effect). We discuss these two effects of MAS on TMS and provide implications and directions for future accounting research.

Organizational culture and performance: the role of management accounting system

PurposeThis study aims to examine the combined effect of the interactive and diagnostic management accounting system (MAS) use and organizational culture on performance. Using the contingency perspective, this study suggests that the performance is enhanced by the interaction of organizational culture and the simultaneous use of both types of MAS.Design/methodology/approachData were collected through a questionnaire, and responses from 147 senior managers provide support for the research model and demonstrate that each type of organizational culture requires different combinations of both types of MAS uses to enhance performance.FindingsThe results of the study indicate that although both uses of MAS are required, highest performance for flexibility value firms is achieved when high interactive and low diagnostic MAS use is employed. On the other hand, for control value firms, this study indicates that using both high diagnostic and interactive MAS creates a positive effect on performance.Research limitations/implicationsAs in the case of most survey empirical studies, this study is static and may not capture the changes in organizational culture over time. To prevent this bias, longitudinal follow up studies would be required. Second, the self‐report data may be affected by common method bias.Practical implicationsThe present study indicates that managers should be aware of the dominant values of their organization cultures before deciding to use MAS in a specific way, and thus contributing to the effectiveness of organizations when both interactive and diagnostic are employed simultaneously.Originality/valueThe results of the present study increase extant knowledge and understanding on the knowledge of the relationships between organizational culture and the use of MAS and how they influence performance. This is important because there are few empirical studies that have examined organizational culture using the competing values framework.

Strategy, enrolment and accounting: the politics of strategic ideas

PurposeThe purpose of this paper is to use Actor Network Theory to explore the role of management accounting systems (MAS) in the construction of business strategy.Design/methodology/approachThe paper draws on findings from an ethnographic study of a UK‐based firm. Theoretical concepts from Actor‐Network Theory are used to illuminate the findings of the study.FindingsThe study found that MAS acted as an obligatory point of passage into the strategic agenda of the firm. However, the findings also reveal the political tactics used by employees in order to work within, against and around the MAS.Originality/valueThe paper shows that MAS are a key player in the political contests that occur during the process of strategy formulation, as opposed to offering a neutral tool for measuring the strategic value of innovative ideas.

Exploring the Role of Management Accounting Systems in Strategic Sensemaking

Management accounting systems (MAS) provide an information context that is required for strategic sensemaking. Research from the interpretive perspective of information processing suggests some mechanisms how MAS can contribute to strategic sensemaking, although it neglects the relationship between MAS use and MAS dimensions. The systems-structural perspective identified some important MAS dimensions, but it does not explain how these dimensions contribute to strategic sensemaking. The objective of this study is to explore the role of MAS in sensemaking and how MAS dimensions contribute to this role. Based on 30 interviews with top and middle managers from 7 large companies we suggest a set of MAS dimensions that relates to sensemaking.